New VAT tax representative rules: requirements and guarantees

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The Italian Revenue Agency has introduced new operational provisions regarding the appointment of a tax representative for VAT purposes and for those who appointed a VAT representative in Italy and intend, through the assigned VAT position, carry out intra EU transactions (Provision no. 178713 of 14 April 2025 and no. 186368 of 17 April 2025)

These provisions apply to who intend to assume or already operate as fiscal representatives, establishing stricter criteria to ensure transparency and fiscal reliability.

 

Summary of the introduced measures – Role of the VAT representative

It is reminded that non-resident entities may appoint a tax representative to fulfil VAT-related obligations, provided, that they do not have a permanent establishment in Italy.

Pursuant to Article 17 of Presidential Decree no. 633/1972 (Tax Code), to perform the role of tax representative, it will now be necessary to:

  • meet the subjective requirements set out in Article 8, paragraph 1, letters a), b), c), and d) of the Ministry of Economy and Finance Decree no. 164/1999; and
  • provide a financial guarantee, based on the number of subjects represented.

 

Subjective requirements for the fiscal representative

As mentioned, individuals wishing to assume the role of tax representative must demonstrate that they meet certain requirements, such as:

  • honourability
  • fiscal reliability
  • legal standing

It should be noted that if a legal entity is appointed, these requirements must be met by the legal representative of the entity.

Furthermore, for tax representatives other than natural persons, the declaration of compliance with the subjective requirements must be submitted by each legal representative listed in the VAT registration or VAT data change form.

These requirements can be self-certified by submitting a suitable declaration in accordance with Articles 46 and 47 of Presidential Decree no. 445 of December 28, 2000.

In case of replacement or new appointment of one or more legal representatives, the declaration must be submitted at the same time as the related VAT form.

 

Provision of the guarantee

The guarantee to be provided by individuals intending to assume, or already operate as fiscal representative must:

  • be issued in the form of a security deposit in government bonds or government-backed securities, or through a bank guarantee or surety bond
  • be addressed to the acting Director of the Provincial Directorate of the Italian Revenue Agency with territorial jurisdiction based on the tax domicile of the fiscal representative, and submitted either directly or through the representative to that same Provincial Directorate
  • have an amount determined according to the number of represented entities:
    • €30,000: for 2–9 represented entities
    • €100,000: for 10–50 represented entities
    • €300,000: for 51–100 represented entities
    • €1,000,000: for 101–1,000 represented entities
    • €2,000,000: for more than 1,000 represented entities
  • have a minimum duration of 48 months, starting from the date of submission to the Provincial Directorate of the Revenue Agency (after this period, renewal of the guarantee is not required)
  • be compliant in content with the provisions of measure no. 186368/E/2025

Tax representatives are required to submit both the declaration of compliance with the requirements and the guarantee at the same time as the VAT registration or VAT data modification form, at the competent Provincial Directorate of the Revenue Agency based on their tax domicile.

 

Transitional regime

Tax representatives already operating as of April 17, 2025 (publication date of the provisions), must submit—by June 16, 2025—the declaration attesting to the fulfilment of the subjective requirements and, where required, provide the related guarantee.

Failure to comply will result in the Revenue Agency notifying, via certified email (PEC) or registered letter with return receipt, the initiation of the procedure to cancel the VAT numbers of the represented entities.

From the date of this communication, the tax representative will have an additional 60 days to regularize their position by submitting the declaration and, if applicable, the required guarantee to retain the assignment. If this deadline is missed, the Agency will proceed with the official cancellation of the affected VAT numbers.

It is also noted that failure to fulfill these new obligations will result in an administrative penalty ranging from €3,000 to €50,000, with no possibility of applying the so called “cumulo giuridico”.

Additionally, non-resident entities not established in the EU or in countries belonging to the European Economic Area (EEA), who have appointed a tax representative and wish to carry out intra-community transactions in Italy, are required to provide a guarantee in order to be included in the VIES database, as provided for by the new paragraph 7-quater of Article 35 of Tax Code.

 

Operational procedures for VIES access

As of April 14, 2025, access to the VIES for non-EU/EEA entities with a tax representative requires a prior guarantee. Regarding this obligation, three categories of taxable persons must be distinguished:

  • those who are not yet VAT-registered: the guarantee must be provided at the time of filing the VAT registration form, in which the option for inclusion in the VIES database is made;
  • those who already have a VAT number but are not yet registered in VIES: they must provide the guarantee before submitting the inclusion request
  • those already listed in the VIES as of April 14, 2025: must submit the guarantee by June 13, 2025. In the event of non-submission, the Revenue Agency will notify the tax representative, via PEC or registered letter with return receipt, of the initiation of the procedure for exclusion of the non-resident entity from the VIES. From that notification, a further 60-day period will be granted to regularize the situation, after which the VIES registration will be officially revoked and the Italian VAT number will be removed from the database

The guarantee required for inclusion in the VIES must:

  • be issued in the form of a security deposit in government bonds or government-backed securities, or through a bank guarantee or surety bond
  • be addressed to the acting Director of the competent Provincial Directorate of the Revenue Agency based on the tax domicile of the tax representative, and submitted either directly or through the representative to that Directorate
  • have a minimum amount of €50,000
  • have a duration of at least 36 months, starting from the date of submission to the Provincial Directorate of the Revenue Agency (after this period, renewal of the guarantee is not required)
  • be compliant in content with the provisions of measure no. 178713/E/2025

Andersen’s professionals are available for any further clarification or information.